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Category Archives: State Law

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Municipal Bond Market Absorbs Puerto Rico Supreme Court’s Decision that Teacher Pension Reform Legislation is Unconstitutional Contract Impairment

Posted in State Law

BY LEN WEISER-VARON and BILL KANNEL The latest swerve in the rollercoaster that is Puerto Rico public finance occurred on April 11 with the release of the Puerto Rico Supreme Court’s ruling striking down as unconstitutional the bulk of the territory’s teacher pension reform legislation.  The outcome of the case creates some disarray in the… Continue Reading

Legislative Trial Balloon for Puerto Rico Public Corporation Insolvency Process Attracts Bondholder Attention

Posted in Bankruptcy, State Law, Workouts

By LEN WEISER-VARON and BILL KANNEL Last Tuesday, Puerto Rico sold its much-ballyhooed $3.5 billion in non-investment grade general obligation bonds.  Two days later, two legislators in Puerto Rico’s Senate filed a bill which, if enacted, would permit insolvency filings by Puerto Rico’s public corporations in Puerto Rico’s territorial trial court.  The juxtaposition of the two… Continue Reading

Legal Highlights in Puerto Rico’s “Draft POS” for Upcoming General Obligation Bond Issue

Posted in State Law

By LEN WEISER-VARON and BILL KANNEL Although Puerto Rico’s much-discussed sub-investment grade general obligation bond issue is not yet being marketed via an official preliminary official statement, it appears that a draft POS has been making the rounds.  The draft POS, dated February 28, 2014, has been posted on at least one website and has… Continue Reading

Puerto Rico Senate Not in a New York State of Mind?

Posted in State Law

By LEN WEISER-VARON and BILL KANNEL As reported by the Wall Street Journal today and by other sources, the authorizing legislation for Puerto Rico’s much anticipated $3.5 billion non investment grade general obligation issue has become hung up in Puerto Rico’s Senate over language included in the bill passed by the territory’s House of Representatives… Continue Reading

Puerto Rico Supreme Court’s Deference to Legislature’s Determinations: A Double-Edged Sword for Puerto Rico Bondholders?

Posted in State Law

By LEN WEISER-VARON and BILL KANNEL The Government Development Bank for Puerto Rico (GDB) hosted an unusual public conference call on October 31 to respond to legal questions raised by investors in bonds issued by the Puerto Rico Sales Tax Financing Corporation, better known by its Spanish acronym, COFINA.  During the one-hour call (which is… Continue Reading

Ballot Initiative Petitions Filed Seeking Operating Margin Limits on Massachusetts Hospitals

Posted in State Law

A series of alternative proposed Initiative Petitions were filed Thursday, August 7, with the Office of the Attorney General of Massachusetts (the “AGO”) seeking primarily to establish specified limits on operating margins achieved by many Massachusetts hospitals and on the compensation of the CEOs of such hospitals.  Details are described in the following Public Finance… Continue Reading

Constitutionality of Detroit’s Emergency Manager Challenged

Posted in State Law

By BILL KANNEL and ADRIENNE WALKER Within days of Kevyn Orr’s appointment as Detroit’s Emergency Manager, a group of elected officials, union representatives, civil rights activist and clergy brought a lawsuit against Gov. Rick Snyder and Treasurer Andy Dillon in federal court, challenging the constitutionality of Public Act 436.  As previously posted, under Public Act… Continue Reading

Michigan Emergency Manager Bill Signed Into Law

Posted in Bankruptcy, State Law

By BILL KANNEL and ADRIENNE WALKER This is a follow up to our recent blog post discussing then pending Michigan legislation known as the “Local Financial Stability and Choice Act” or Public Act 436 (the “Financial Stability Act”), which will replace Public Act 72 and overhaul Michigan’s emergency manager law.  On December 27, 2012, Michigan… Continue Reading

Regulations Issued for Remote Participation in Meetings Subject to the Massachusetts Open Meeting Law

Posted in State Law

By JOHN R. REGIER The Massachusetts Attorney General recently promulgated regulations authorizing remote participation in meetings subject to the Open Meeting Law under certain prescribed circumstances. The Massachusetts Open Meeting Law has long required public bodies to conduct their business in meetings that are open to the public. They cannot, for example, take action by… Continue Reading